I prefer to look at these things in realistic way. It means, besides few other considerations, that 'common sense accounting rules' do not work with any government. Going a bit more specific, democratically-elected form of government will not comply with accounting rules primarily because it needs to be re-elected, i.e. pandering to common good issues will force it to bend the accounting. Other forms of government will bend accounting too just by different reasons.
It means, imho, that the only way to accomodate sounder accounting is to keep government out of business as much as possible. Obviously, it will not guarantee absolutely sound accounting, and it does not give warranty against frauds, but it may keep things afloat much longer and make repairs feasible. In case of goverment-run business problems go so deep that repair is not feasible and bandage-aid measures hooking taxpayers deeper and deeper, become the only realistic outcome.

>I was referring to the Govt not following any common sense accounting rules as the next big fraud. Just because it is SOP for our system doesn't make it any less fraud. I find it hard to believe you are so accepting of this behavior.
>
>>I don't understand what you mean. This thing was sealed at time when government decided to create F&F, i.e. it is not something that should come up as a kind of surprise that we suddenly have to deal with. Hopefully :), this understanding will help people to get better prepared to any future 'frauds' when they create new government entities of monstrous proportions, e.g. in Healthcare area.
>>
>>>Thats the next bigger fraud we will have to deal with, I wish we had some honesty in our government, oh well.....
>>>
>>>>It is just the way government works. What would you expect if government budget books would be audited using GAAP standards?
>>>>
>>>>>I don't have a link for it yet, but the talking heads on CNBC and CNN over the weekend said this plan came about abruptly when Merrill's audit showed them misrepresenting their assets and carrying tons of bad debt on the books without writing it down and many other accounting and disclosure issues,
>>>>>
>>>>>>>Private profits, public debts
>>>>>>>
>>>>>>>But the morons running the place might still get multi million dollar severence packages
>>>>>>>
>>>>>>>This will probably be the biggest fraud/bailout in history, until they engineer the next one....
>>>>>>>
>>>>>>>Bob
>>>>>>>
>>>>>>>http://www.nytimes.com/2008/09/08/business/08fannie.html?_r=1&ref=patrick.net&oref=slogin
>>>>>>
>>>>>>I think you blame crimes that do not exist. F&F was/is inefficient government-sponsored monster, but it does not make people working there criminals.